12 Ways to Buy a New Boat for Less – Part I

1. Buy One Boat, Not Two  

First time buyers biggest mistake is rushing into boat buying before they know exactly how they are going to use the boat and its purpose. The result is 50% of the time they buy a boat that’s not suitable for their needs, and in a year or two – when they know what they really need – they buy a second boat and take bath on the first one. 

Paying two sales commissions, instead of one, is costly. So, the first way to save money on a new boat is to know exactly what you want.  Talk to your significant other, your kids, your friends who have boats, think through how you will use the boat and what type is best.  Then research that type until you know it cold. Start and end your search with Boat TEST, of course.

2. Settle for a Lesser Brand

This one is pretty obvious, and that is why many people use BoatTEST:  To find a boat that does pretty much what is wanted, yet sells for a lower price. 

Lower-priced brands are generally built with lower-cost materials (all gel coat is not the same), equipment, and accessories, as well has to skimp on engineering, quality control and customer service personnel. 

Many of the low-priced boats also don’t build to ABYC standards, and are not NMMA Certified.  For example, at least five of the largest selling fiberglass center console brands are not NMMA Certified. 

That means that the builders have self-certified that they have met the basic few USCG boat building requirements, and no other responsible independent body has even looked at the boats. If you’ve ever wondered why many inexpensive brands are not tested by Boat TEST, you now have the answer. Why does bologna reject the grinder? 

Buyers of cheap center consoles are saving money, but at what cost? The trick is to find the low-cost builder that also builds to ABYC standards and is NMMA Certified. When we look over the list of NMMA-certified brands we find more than five lower cost brands that have met ABYC Certification criteria. Those are the brands to key-in on if you want to take that price strategy.

The Big Question with Low-Priced Brands

The question is: will a low-cost, but certified, boat be an enjoyable experience? Our experience is that they can be a disappointment because little things go wrong, their ergonomics may not be the best, gel coat dulls faster or needs greater maintenance, pumps and through-hulls may not be robust. customer service is disappointing, and warranty claims may fall off the table, If the company goes out of business, then warrantees are worthless.

Boats 20’ (6.09 m) and under with a 2-hp or greater engine must float level if swamped by Federal Regulation. Frankly, with boats from low-priced brands we are not confident that they will. If you have read our “Accidents of the Week” feature, then you know that small boats “sink” periodically. Boats are not tested by the USCG for compliance by model before they are put on the market, so you are relying on the integrity of the builder.

Having said all of this, we also must report that hull failures of low-cost center console are virtually non-existent. Fiberglass is such a durable material, and after 60 years of making boats with it, the industry knows what it’s doing.

3. Buy a Strong Brand from a Weak Dealer

For this strategy to work, it usually has to be combined with others on this list. Builders of large numbers of boats usually have a large number of dealers, and some will not be as financially solid as others, or are in a poor territory. 

That can be an opening to an excellent boat at a heavily discounted price - under some economic circumstances. Here, timing has to be combined with identifying the dealer who has an unsold boat at the end of the season or accounting year, or when macro-economic challenges hit. Get your name on this dealer’s list as a buyer of last resort. 

Consumer Caveat: Boat builders do not like dealers who sell out of their franchised territory, and most do everything they can to discourage the practice – sometimes to the point of making the two dealers involved split the commission. Further, the buyer is going to need the local dealer to help when things go wrong with the boat. People who have bought out of a dealer’s territory to get a lower price will be at the bottom of local dealer’s list when it comes to providing service. (We’re not in the automobile industry.)

This strategy only works best when achieved by a buyer within the franchised dealer’s territory.

4. Order in Advance 

When new boats are introduced, there is often a mad rush to buy the model.  Usually that model is being built in the first place because the builder’s customers have been clamoring for it.  Because the company may have already pre-sold many units at retail, and dealers are lined up for more, often a boat won’t be available for 6 months to a 

year.  In the case of large boats, that wait could be out 2 years or more. 

In such a case, our advice is to strike a bargain to buy a future boat in the production line at a negotiated price. Both the dealer and the builder will be happy to have a boat sold in the future, and they may be willing to agree to a favorable deal to guarantee cash flow in the otherwise unknown future. 

5. Buy Now While the U.S. Dollar is Strong

We have not seen the dollar this strong against the British Pound Sterling ($1.22) since 1985; against the Euro ($1.08) since 2003, and against the Australian dollar ($.69) since 2008. For boats built abroad, now is definitely a time to act.  This is why one offshore builder we know of is sold out until 2025.

Unfortunately, today the number of builders in the U.S. making large boats can be counted on one hand (courtesy of former congressman and felon Dan Rostenkowski in 1991). Over 30 foreign brands are being imported into the U.S. from Europe, Turkey, the Far East, Australia and Brazil, primarily. Most are being built to EU standards, many to ABYC standards or both.  

Boat TEST has tested models from most of these brands and we can attest that these builders, without exception, are making excellent boats.  Many have a long boat-building heritage and culture as old or older than our own.  

6. Mark July and December on Your Calendar

In the case of small and mid-sized boats, July and December are often good times to buy. Dealers in July are often trying to get rid of inventory before the new models start coming in, which happens typically in August and September.  

Then, again in December, some dealers want boats off their books for tax, floor planning or other business reasons and are willing to sacrifice margin for cash. 

Be sure to read Part II which will appear in tomorrow’s newsletter.

To see the last 6 Ways to Lower New-Boat Costs,